The Shanghai Nanpu Food Debt Asset Package is a benchmark project for non-performing asset disposal led by Yinding Asset, which aims to transform industrial assets into high-end hotels and empower asset appreciation through innovative models. The core highlight of the project lies in optimizing the legal model to reduce acquisition costs, while introducing the Hilton hotel brand to reshape old industrial plants into high-end hotels, achieving a leapfrog increase in asset value. Our company has been in full contact with debtors, lessees, and other parties, promoting judicial restructuring in accordance with regulations, successfully completing asset transformation, and achieving the upgrading of old asset formats and value creation.
Project BackgroundThe mortgaged assets are located around the core CBD of Lujiazui, Pudong New Area, Shanghai, and are standalone commercial assets. When acquiring the asset package, the mortgaged assets were leased and actually occupied by a third-party company. The surrounding area of the mortgaged asset can be reached by taking Line 2, Line 4, Line 6, Line 9, and Line 14 of the subway, which are only 600 meters away from the subway station and about 1 kilometer away from other lines, making transportation convenient. The asset is only 2.8 kilometers away from Lujiazui Shanghai Guojin Center and about 5.8 kilometers away from People's Square, with a superior regional location. |
Disposal ProcessBefore acquiring the asset package: Yinding Asset reached exclusive cooperation with the debtor and lessee; Reaching intention agreements with foreign institutions and domestic apartment operators to lock in the selling price; Accounting for asset transfer taxes and fees with tax authorities; Communicate with various departments in Pudong New Area to determine the processing procedures and requirements for the policy of incorporating assets into the management of guaranteed rental housing; Communicate with the judge of the executing court where the creditor's rights are located to determine the execution process and expected time. After acquiring the asset package: Yinding Asset immediately promotes the execution auction of the mortgaged assets. Through cooperation with the debtor and lessee, the plan is to realize the use of assets to offset debts after the first or second auction fails. After tax, tax payment and certification will be processed, and the procedures for inclusion in the security lease will be handled. The assets will be sold through equity transfer to achieve project exit. |
Results And BenefitsThe project investment period is 12 months; Invest in two phases, with the first phase having a 9-month investment period; The second investment period is 3 months. The total IRR of the project is 44.07%. Among them, Yinding contributed 30% as inferior funds, with an IRR of 128.88% for inferior funds. |
Core Business Capability1. Lock in the asset disposal cycle and reduce transfer taxes through exclusive cooperation with debtors and lessees. Yinding Asset ensures the smooth progress of court enforcement procedures through exclusive cooperation with debtors and lessees. 2. Enhance asset value by incorporating policies for affordable rental housing. If the asset is operated as an office building or hotel, its estimated value based on rent or income yield is approximately 1.2 times its current assessed value. After realizing the use of property as collateral for debt, Yinding Asset has transformed its assets from commercial properties to residential properties by incorporating them into the management of guaranteed rental housing, greatly enhancing the value of the assets. The selling price currently locked in with the interested party has exceeded the asset's assessed value. |
